New York LLC Taxes — Step 8 of 8
The final step: understanding what you'll actually owe. A New York LLC pays federal self-employment and income tax like every LLC, plus New York's state income tax and a separate annual LLC filing fee. We'll break down each piece and give you an estimator to ballpark your total.
A New York LLC is a pass-through by default — profits flow to your personal return, with no separate federal business income tax. You pay federal income tax, 15.3% self-employment tax, and New York state income tax (4%–10.9%). New York also charges an annual LLC filing fee (Form IT-204-LL) of $25–$4,500 based on NY-source gross income. NYC residents add city income tax.
- Federal tax
- Pass-through
- Self-employment
- 15.3%
- NY income tax
- 4%–10.9%
- IT-204-LL fee
- $25–$4,500
- NYC residents
- + city tax
- S-corp election
- Form 2553
- Your progress
- Step 8 of 8 🎉
How New York LLCs Are Taxed
By default, the IRS doesn't tax an LLC as its own entity. Instead, your LLC is a pass-through: profits "pass through" to the owners, who report them on their personal returns. A single-member LLC files on Schedule C; a multi-member LLC files Form 1065 and issues each member a K-1. On top of federal tax, New York taxes that same income at the state level, and charges a separate annual LLC filing fee.
Federal income tax
Your share of profit is taxed at your personal federal rate (10%–37%), after the standard deduction and the 20% QBI deduction where eligible.
Self-employment tax
15.3% (12.4% Social Security up to the wage base + 2.9% Medicare) on your active net earnings — this funds Social Security and Medicare.
NY state income tax
New York taxes the same income on a progressive scale from 4% to 10.9%, filed on Form IT-201 (residents).
IT-204-LL filing fee
An annual $25–$4,500 fee based on your New York-source gross income, paid to the NY Department of Taxation and Finance.
New York LLC Tax Estimator
Enter your expected net profit (revenue minus business expenses) to ballpark your federal and New York taxes for 2026. This assumes default pass-through taxation:
Estimate for a default pass-through LLC using 2026 federal and New York brackets, standard deductions, the SE-tax deduction, and a simplified 20% QBI deduction (federal only). Assumes a single-member LLC ($25 IT-204-LL fee). Excludes NYC/Yonkers local income tax, credits, the high-income NY supplemental tax, other income, and state estimated-payment nuances. Not tax advice — confirm with a CPA.
The IT-204-LL Annual Filing Fee
This is a New York-specific fee many new owners overlook. LLCs with New York-source gross income file Form IT-204-LL and pay a fee based on that gross income, due within 60 days after the end of your tax year. Single-member LLCs with NY-source income pay a flat $25; multi-member LLCs use this sliding scale:
| NY-source gross income | Fee |
|---|---|
| Under $100,000 | $25 |
| $100,000 – $249,999 | $50 |
| $250,000 – $499,999 | $175 |
| $500,000 – $999,999 | $500 |
| $1,000,000 – $4,999,999 | $1,500 |
| $5,000,000 – $24,999,999 | $3,000 |
| $25,000,000+ | $4,500 |
Can an S-Corp Election Save Money?
Once your profits are healthy, electing S-corporation tax treatment (by filing IRS Form 2553) can reduce self-employment tax. As an S-corp, you pay yourself a reasonable salary (subject to payroll tax) and take the rest as distributions that avoid the 15.3% SE tax. The catch: payroll, extra filings, and accounting costs. It usually makes sense once net profit comfortably clears roughly $60,000–$80,000.
Form 2553 is for S-corp, not C-corpTo elect S-corp status, file Form 2553. (Form 8832 is for electing C-corp treatment — a different and usually less useful path for small LLCs.) Talk to a CPA before electing, since New York has its own S-corp election and treatment rules.
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New York LLC Taxes — FAQ
Ahmad Adil is the founder and CEO of LLC School. The tax details here — pass-through treatment, the 15.3% self-employment tax, New York's 4%–10.9% income tax, the IT-204-LL filing fee schedule, and the Form 2553 S-corp election — reflect 2026 IRS and New York Department of Taxation and Finance figures. This is educational information, not tax advice.
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